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Before Procuring ERP For Your Company, You Should Definitely Improve Your Processes

By 12 March 2022October 25th, 2022No Comments6 min read

ERP (Enterprise Resource Planning) is an integrated and strategic corporate information technology software platform that transforms data to incorporate business processes into information and provides integration.

In addition to all internal processes of the company such as sales, purchasing, production, accounting, finance, and human resources, ERP also contributes to the integration of the organization with its customers, suppliers, banks, tax administration, and other external units.

ERP is a need that organizations need maybe every 10-15 years in its life; It is an institutional need that affects productivity, effective work, and institutionalism and has a high cost (software, installation and consultancy). In case of dissatisfaction, failure may be encountered and serious costs may be required as a result.

Although ERP is a software platform, it should be treated primarily as a management tool, and it is critical to move forward with the decision and involvement of the company’s board of directors and senior management. ERP needs to be selected, implemented, maintained and audited correctly. ERP concerns all processes and all employees of companies and affects the way they do business.

Naturally, it is difficult for companies to carry out the selection process of such a technological and complex product on their own, especially in the face of the abundance of domestic and foreign ERP manufacturers and product options.

Before choosing ERP, there are great benefits for companies to review their organizational structures, workflows, job descriptions, risks and internal controls, and to increase standardization and adapt their corporate processes to the ERP they will choose; because the processes operating in the departments (practices in the field, procedures, authorities, job descriptions, reporting lines and content, management of corporate risks, internal controls, etc.) can become more complex over time due to personnel changes, inability to follow up-to-date practices, etc.

The more ready and mature these processes are, the fewer difficulties can be experienced in the transition to ERP. In addition, after the ERP selection, auditing the application/installation (implementation) of the selected ERP program will also increase the quality of the application and increase the likelihood of employee adoption.

While a well planned and implemented ERP project with a well-decided scope and the right team after reviewing the existing processes can provide benefits such as efficiency, institutionalization, effective working and reporting at optimum cost, an ERP project which has started with wrong planning, scope and team and implementation without reviewing the existing processes may have the potential to result in financial loss, missed opportunity and corporate unrest.

ERP selection should be in line with the company’s goals and strategies. For example, the ERP that should be chosen by a company that will increase its international operations and product range in the next 10 years, aiming to increase its turnover by 4 times by entering new markets, may not be the same ERP that a company without such goals and dynamism should choose.

In addition, the financial resources of the company, the qualifications of the employees, the corporate culture and openness to change, corporate planning, and implementation accumulation are some other variables that may affect the sustainability of the ERP to be selected.

 

Consulting Services

Teolupus Internal Audit and Risk Management Consulting offer the following boutique services regardless of the brand, with a good ERP application methodology, best company practices, risk and internal control-oriented perspectives on processes, before ERP preparations, ERP selection, and installation:

– Analysis of current business processes in all business units, meeting with process owners for this purpose; examining the current use of ERP, bottlenecks, expectations, requests, and needs of all departments and processes such as supply chain, sales, purchasing, production, human resources, accounting, and finance according to cause and effect relationship, management with local and international experience and various certificates reviewed by its consultants according to the risks, existing internal controls and best practices in Turkey and in the world,

– Putting the ERP selection criteria in writing in consultation with the process owners,

Therefore, in the preparation process for the new ERP, companies also receive a service where they can be aware of and improve the deficiencies in their processes, increase their efficiency, effectiveness, and competitiveness, get to know their risks closely, and take precautions, and strengthen their corporate structures.

In many instances of ERP selection whose implementation fails, failure to analyze the existing processes take initial process improvement steps and wrong identification of the scope play an important role.

– Preparing a report containing solution proposals for improving existing business processes and making them suitable for the operation of ERP,

– Support for the implementation and implementation of the suggestions within the company,

– ERP awareness training within the company,

– Determining the key users and critical processes/reporting needs in the selection process of the ERP suitable for the needs, preparing the request for proposal document (RFP) and technical specifications, finalizing the ERP selection in line with the client’s needs and criteria,

– Undertaking the audit function for successful results in the process of adapting (implementation) the selected ERP software to the company and ensuring its sustainability, by adhering to the predetermined success criteria and generally accepted requirements,

-Auditing the sustainability of the selected ERP after it gets to alive status in the company.

 

ERP Customer Business Cycle

 

 

    • Standard ERP
    • Customization need
    • Additional development needs
    • Cloud solution
    • Solutions of third party providers and integrations

     

    Teolupus Internal Audit and Risk Management Consulting

    It is a management consultancy firm that provides boutique services to companies in areas such as Internal Audit, Corporate Risk Management, Internal Control, Process Improvement, ERP Selection Consulting, Dealer (Franchise) Audit, Human Resources, Institutionalization, Digital Transformation, Financial and Legal Risk Management.

    Professionals with certifications such as Certified Internal Auditor (CIA), CCSA, CFSA, CRMA, CGAP, CISA, CFE, CPA/ SMMM, CRMA, CICA, FAFA, FE, RPA, CMB Level 3, Derivatives, Credit Rating, and Corporate Governance Rating, it provides an independent and impartial boutique management consulting service, unique to clients’ needs, in all processes, including strategic, operational, financial, compliance with legislation and management reporting, by designing projects in accordance with the strategic needs of companies such as institutionalization, growth, efficiency and effective working. Teolupus considers international professional frameworks, standards, models, and industry best practices in its services.

     

    Our Principles (Our Values):

    • Working closely with our customers and offering high-standard solutions
    • A boutique service approach in line with the corporate culture
    • To provide high discipline and timely service
    • To provide international quality in accordance with the needs
    • To ensure the continuity of career and personal development of our distinguished and professional team

     

    Teolupus Consulting Services:

    • Process Analysis Consultancy
    • Process Improvement Consultancy
    • Pre-ERP Preparation Consultancy
    • ERP Selection Consulting
    • ERP Project Audit Services
    • Enterprise Risk Management
    • Internal Audit Services
    • Dealer Inspection Services
    • Institutionalization Services
    • Strategic Management Consulting
    • Human Resources Services
    • Digital Transformation Consultancy
    • Financial and Legal Advice